Despite the high expectations and hopes built in the previous days that the first spot Bitcoin ETF in the US will be finally approved by the SEC after numerous delays, a somewhat opposite scenario is being cemented these days. The question of where to buy Bitcoin, which would not long ago seem to gain new nuances as crypto-interested people were waiting for the new financial investment tools to break into the market, now hints at a conflicting future conclusion.
An increasingly higher likelihood of the SEC postponing the applications of Hashdex, GrayScale, and other filling companies is being cemented. According to analyst Markus Thielen from the financial services company Matrixport, the submitted requests have yet to fulfill all the requirements to make them eligible to build ETFs. Based on perspectives like these, the highly-awaited BTC ETF might witness a further delay. Yet, on the positive side, this postponement could bring more time for investment in the asset, offering an opportunity to purchase it at what could still be considered a bargain price.
There’s been a lot of noise in this space. Still, one plot seems to fortify better than ever, and the potential growth of Bitcoin represents that picture of reaching the gold’s level in terms of widespread acceptance, financial power, reliability, notoriety, and more. Numerous knowledgeable persons in the crypto and larger financial space consider Bitcoin the century’s money, with Zoomers fueling its large-scale adoption.
It seems like the SEC is raising obstacles in Bitcoin’s way to mainstreamness and wide usability. So, why are things the way they are, what are pundits thinking, and how is BTC actually similar to gold? In the paragraphs to follow, you’ll discover the answers to these questions by mainly unearthing the opinions of expert gurus like professors and asset managers about BTC’s future.
Reliable personalities in the financial sector validate a common course for BTC and gold
The crypto community closely follows renowned voices in the digital assets ecosystem as they can offer the most pertinent and sustained opinions and information. Gabor Gurbacs, VanEck’s digital asset manager and financial guru, expressed a thought felt and held by many, according to which Bitcoin isn’t thoroughly and correctly understood. The cryptocurrency system is such an intricate and intriguing space, but while it may be comprehensible at a superficial level, unearthing its intricacies requires a solid understanding of finance, economics, trading, and more. As mentioned earlier, the essentials emphasized by the expert conveyed a wide-held insight, drawing a parallel between Bitcoin and gold.
Echoing the perspectives of other sage voices, Gabor Gurbacs hinted at history as a proper reference to back up the declaration that Bitcoin, over the long term, could resemble gold in terms of mainstreamness and financial strength.
Academics and professors, too, hint at a BTC–gold parallel (or tussle)
US academics such as Wharton Professor Jeremy Siegel draw a parallel between BTC and Millennials’ new gold, as according to many pundits, Bitcoin has all the potential to work as a first-rate alternative and hedge against the inflation and central bank printed money that led the former factor to rise multiple times throughout the past years.
Another reliable figure in the financial space, Professor David Yermack, who teaches finance at New York University, draws attention to the fact that these two asset classes shouldn’t be mixed. They both can drive wealth for investors by serving as a hedge against inflation catalyzed by money printing. Still, despite the profit-related similarity, the data cannot consistently support a link between the returns made from both categories. The doctor emphasizes this theory through the example of gold’s growth after the conflict in Israel and Bitcoin’s tumbles in the following days.
The launch of the first BTC ETF in the US could bring trillions in time
Expectations for the first US BTC ETF could’ve drowned lately, but pundits encourage investors not to lose hope for its long-term performance. Bitcoin’s US ETF release may be a non-event for the asset in question, but the future could witness this move draw trillions to the crypto market due to heightened exposure and security. The macro-impact of the launch is momentarily underestimated.
As history and the former’s expansion demonstrate, gold could be a priceless benchmark for studying Bitcoin. For the sake of exemplification, the SPDFR Gold ETF was launched on November 18, 2004, and over the following four years since its release, it has succeeded in growing four times. The market reached a $1,800 threshold from $400, increasing from $2 trillion to around $10 trillion and marking a fourfold rise.
As chronicles show, gold’s price rally only resulted after the gold ETFs broke into the market. Bitcoin today boasts a market worth $834 billion, representing around 41% of that of gold when the first related ETF was launched. Consequently, should Bitcoin follow in gold’s footsteps and skyrocket, a similar scenario could be possible and see the market for the former rise to nearly or more than $3 trillion.
After the first gold ETF was inaugurated in 2004, the price of the rare material witnessed a significant increase. Investors could more easily invest in the asset without having to own it. This heightened accessibility and liquidity led to an impressive growth in demand for the metal, thus influencing its market price and marking a pivotal milestone in the history and dynamics of the gold market.
Analyst at Deutsche Bank Research, Marion Laboure, expressed thoughts that BTC will be the payment’s future. According to other pundits who take it further, Bitcoin could be the new gold and see its value double over the upcoming few years. The resemblance to gold isn’t only backed by the two’s supply cap and scarcity and looks into their sensed underlying value. Bitcoin was originally a digital version of gold, and the scarcity factor only cemented Bitcoin’s potential as a priceless store of value, just like gold acts for investors.
Additionally, BTC’s decentralized nature, backed by the P2P network system work where no central authority is involved, only boosts its desirability as a store of value.
To conclude with
Some short-term volatility exists on the back of the SEC’s postponement, but predictions for this year remain mainly bullish. Drawing a parallel between gold and Bitcoin, it’s clear why many gurus bet on a similar path followed by the latter.
Cameron Dickerson is a seasoned journalist with nearly 10 years experience. While studying journalism at the University of Missouri, Cameron found a passion for finding engaging stories. As a contributor to Kev’s Best, Cameron mostly covers state and national developments.
